FX: PZ Cussons Nigeria’s losses hit N73.8bn in H1

PZ Cussons Nigeria Plc in its financial results for the second quarter of the fiscal year 2023/2024, has reported a pre-tax loss of N73.8 billion, marking a significant downturn of 895 percent compared to the N9.3 billion pre-tax profit achieved in the same period of the preceding fiscal year.

In the second quarter, the group accrued a pre-tax loss of N35.2 billion, marking a 548 percent year-on-year decline from the N7.8 billion pre-tax profit accrued during the corresponding quarter in the previous fiscal year.

According to the company’s unaudited financial results for Q2 2023/2024, the group posted a half-year revenue of N68.1 billion in H1 2023/2024, which reflects a 19 percent improvement from the N57.3 billion revenue recorded during the corresponding period in 2022/2023.

During the quarter ending November 30, 2023, the group recorded a revenue of N37.0 billion, reflecting PZ Cussons Nigeria Plc posted a gross profit of N21.9 billion in H1 2023/2024, reflecting a 61 percent year-on-year increase from the N13.6 billion posted in the corresponding period of the previous fiscal year.

However, due to a foreign exchange loss of N87.1 billion in H1 2023/2024, the group recorded an operating loss of N77.0 billion, which was a whopping 5224 percent year-on-year decline from the N1.5 billion operating profit recorded in H1 2022/2023.

As of Q2 2023/2024, PZ Cusson Nigeria recorded a negative equity of N23.2 billion, as the group’s accrued losses had impacted on the company’s retained earnings from the end of the 2022/2023 fiscal year.

The group’s total liabilities during Q2 2023/2024 hit N178 billion, representing a 51% rise from the total liabilities at the end of the 2022/2023 fiscal year.

This increase is mostly attributed to the rise in borrowings as well as trade and other payables.

The group’s borrowings at the end of Q2 2023/2024 hit N59.2 billion, reflecting a 147% rise from the N24.0 billion borrowings posted at the end of FY 2022/2023.

Among the reported borrowings balance of N59.2 billion, a substantial portion totaling N35.6 billion is attributed to a $40.26 million interest-free loan from PZ Cussons Nigeria’s parent company, PZ Cussons (Holding) Limited.

As of the second quarter of the fiscal year 2023/2024, the impact of Naira devaluation has contributed to an escalation of the loans’ balance from N18.7 billion to N35.6 billion.